Put option
A put option is the right to sell at the strike before expiry, so it gains when the price falls: insurance on a holding, or a short with the loss capped at the premium. When everyone is buying puts, the fear is already in the price; a cash-settled short is the uncapped alternative.
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In the help centreSee how leverage and margin work on MochatradeRelated terms
- Option open interestOption open interest is the number of option contracts that exist at a strike right now, free on any option chain. The…
- Options contractAn options contract gives the buyer the right, not the obligation, to buy (call) or sell (put) at a strike before…
- Liquidation / forced square-offLiquidation, or forced square-off, is the venue closing a leveraged position because the margin can no longer cover…
- Margin callA margin call is a broker's demand for more funds when your account falls below the required margin; ignore it and…
- Open interestOpen interest is the total size of all open positions in a contract, how much money is in the trade. Rising open…
- Funding rateThe funding rate is the periodic payment between longs and shorts that keeps a perpetual near the real price: above…
Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.